INFLUENCE RATIO PROFITABILITYOF STOCK PRICE LQ45
Jaka Ha Okta, Adji Prabawa Sri
Abstract
Jaka Ha Okta, Adji Prabawa Sri
Abstract
This study analyzes ratio profitability affecting a stock price of companies at the Indonesian Stock Exchange. The samples of the companies taken in the study were the companies of active traded at the Indonesian Stock Exchange and they had published their financial report from 2005-2008. By a purposive sampling method, multiple linear regressions with the use of SPSS program version 14.0. The dependent variable of the study was stock price; whereas, the independent variables were Return On Asset (ROA), Return On Equity (ROE), Price Earning Ratio (PER), and Earning Per Share (EPS). Thec result of the study indicates that only Price Earning Ratio (PER) and Earning Per Share (EPS) significantly affected the share price. The effect of independent variables (ROE, ROA, PER, ESP) to the dependent variable (stock price) is for 68.1%
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This study analyzes ratio profitability affecting a stock price of companies at the Indonesian Stock Exchange. The samples of the companies taken in the study were the companies of active traded at the Indonesian Stock Exchange and they had published their financial report from 2005-2008. By a purposive sampling method, multiple linear regressions with the use of SPSS program version 14.0. The dependent variable of the study was stock price; whereas, the independent variables were Return On Asset (ROA), Return On Equity (ROE), Price Earning Ratio (PER), and Earning Per Share (EPS). Thec result of the study indicates that only Price Earning Ratio (PER) and Earning Per Share (EPS) significantly affected the share price. The effect of independent variables (ROE, ROA, PER, ESP) to the dependent variable (stock price) is for 68.1%
Key concepts: Stock exchange, Return on assets, Return on equity, Share price, Business, Variables, Econometrics, Cost price